SoftBank takes orders for US$10bil in bonds to fund OpenAI investment
The Japanese conglomerate is aiming to raise US$1 billion in a 3-1/2-year bond, US$4.5 billion in a 5-1/2-year bond and US$4.5 billion in a 7-1/2-year bond deal.
SoftBank Group Corp is seeking investor orders for a US$10 billion bond deal to support its investment in OpenAI, according to a term sheet seen by Reuters. The Japanese conglomerate intends to issue three bond tranches: US$1 billion for a 3-1/2-year bond, US$4.5 billion for a 5-1/2-year bond, and US$4.5 billion for a 7-1/2-year bond.
Potential investors have been provided with price guidance, with the 3-1/2-year bond priced between 8.75% and 8.875%, the 5-1/2-year bond between 9.375% and 9.5%, and the 7-1/2-year bond between 9.75% and 9.875%. If the deal reaches its target, it would mark the largest high-yield bond sale by an Asia-Pacific and Japanese issuer, surpassing SoftBank's own US$7.35 billion issuance in 2021, as per LSEG data.
The bonds are anticipated to receive a BB+ rating from S&P and Fitch. Book closing is set for noon New York time on Wednesday, with settlement scheduled for September 29. SoftBank has not yet commented on the matter.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- SoftBank takes orders for US$10bil in bonds to fund OpenAI investment freemalaysiatoday.com
- SoftBank taking orders for $10 billion in bonds to fund OpenAI investment, term sheet shows economictimes.indiatimes.com
